The Bayou State has other organizations to assist small businesses with more than just financing and raising capital.

The Louisiana Small Business Development Center offers business training, seminars, and connections to resources for financing small businesses. SCORE is a nonprofit organization made up of retired business executives who stand ready to provide mentoring and advice to small business owners.

Several organizations in Louisiana offer grants to encourage the development of small businesses.

For example, GrantWatch keeps a database of grants currently available to small businesses in Louisiana. WomensNet sponsors the Amber Grant program to provide grants to women entrepreneurs who want to start their own small businesses. The Small Business Innovation Research (SBIR) program managed by the SBA offers funding for entrepreneurs to conduct research that will eventually lead to commercialization of their vision.

Before applying for a loan, you’ll need to decide on how to structure your business. It could be either a sole proprietorship, a corporation, or a limited liability company (LLC). If you’re going to operate as a sole proprietor, you’ll only need to record the name of the business with the county. But if you’re going to incorporate or become an LLC, you’ll need to register the name with the Louisiana Secretary of State.

The next step is to find out what documentation the lender requires. Generally, most lenders will want to see a business plan, cash flow projections, description of the collateral being offered to secure the loan, and a clear plan on how you intend to pay the loan back. The lender wants to feel comfortable that you have established a valid purpose and need for the loan, that it will be beneficial to your business, and that the lender will not be taking on any unusual risk.

The right type of loan depends on what the funds are being used for. If you intend to use the loan to buy a piece of equipment, then a long-term loan with payments over several years is the best choice. If you’re going to use the funds to support inventory and accounts receivable, then a short-term loan or a revolving line of credit is the way to go. Online platforms, such as Lendio, have analysts who can discuss your financing needs and recommend a solution.

Businesses need more than just equity capital to start up and grow. From time to time in their development, small businesses need to borrow money, either on a short-term or long-term basis. Having an established relationship with a banker or other lender is important for a business to have access to debt financing when it’s needed to support its growth.

An SBA preferred lender is a lender that’s been approved by the Small Business Administration to administer SBA loans without additional approvals from the SBA. Typically these lenders have years of experience and can approve SBA loans faster than non-preferred lenders.

SBA loans are backed by the government and offer lower interest rates than other types of small business loans. They typically require a minimum time in business of two years and a credit score of 650+.